4G Connections Hit One Billion as Mobile Broadband Momentum Extends to the Developing World

(BUSINESS
WIRE)-- The number of 4G mobile connections worldwide has surpassed the
one billion mark and is on track to account for a third of all mobile
connections by 2020, according to a new study by the GSMA. The 2016
global edition of the GSMA’s ‘Mobile Economy’ series of reports points
to an accelerating technology shift to 3G/4G mobile broadband networks
across both developed and developing markets, which is fuelling digital
innovation, smartphone adoption and mobile data growth. The study
calculates that the mobile industry made a $3.1 trillion contribution to
the world economy last year, equivalent to 4.2 per cent of global GDP.

“Our
new report reveals that mobile broadband is now a truly global
phenomenon, extending high-speed connectivity and services to citizens
in all corners of the world,” said Mats Granryd, Director General of the
GSMA. “The unprecedented growth in mobile broadband last year is
testament to the billions of dollars that mobile operators have invested
in next-generation networks, services and spectrum in recent years.
Mobile is now the most ubiquitous platform for people and businesses to
connect and innovate in today’s digital economy.”

4G accounted
for one billion of the 7.3 billion mobile connections1 reached by the
end of 2015. The number of 4G connections doubled in 2015, largely as a
result of the increase in 4G network deployments in the developing
world. At the end of the year there were 451 live 4G (LTE) networks
available in 151 countries, with almost half of these in the developing
world. 4G is forecast to account for around a third of the almost nine
billion mobile connections expected by 2020. Mobile broadband networks
(3G and 4G) accounted for 50 per cent of connections in 2015, a figure
set to rise to 70 per cent by 2020.

The combination of increasing
mobile broadband access and rising smartphone adoption is contributing
to an explosion in mobile data usage. Smartphones accounted for 45 per
cent of mobile connections in 2015 (up from just 8 per cent in 2010) and
a further 2.6 billion smartphone connections are expected to be added
over the next five years. Mobile data volumes are forecast to grow at a
CAGR of 49 per cent over the next five years – a more than seven-fold
increase – approaching 40 exabytes per month by 20202. This will be
equivalent to a global average of 7 gigabytes per subscriber per month.

The
number of unique mobile subscribers3 worldwide stood at 4.7 billion at
the end of 2015, equivalent to 63 per cent of the world’s population.
Unique subscribers are forecast to reach 5.6 billion by 2020, by which
point more than 70 per cent of the global population are expected to
have a mobile subscription. More than 90 per cent of subscriber growth
over the next five years is forecast to come from developing world
markets.

Mobile Contributing to GDP, Jobs and Public Funding

The
global mobile industry added $3.1 trillion in economic value to the
global economy in 2015, equivalent to 4.2 per cent of GDP4. This is
predicted to rise to $3.7 trillion by 2020. The industry also directly
and indirectly supported 32 million jobs in 2015 (forecast to rise to 36
million in 2020) and contributed $430 billion to public funding in the
form of various types of taxation, a figure expected to grow to $480
billion in 2020 based on current levels of taxation. This public funding
contribution excludes fees paid by operators for spectrum licences,
which generated more than $90 billion for governments around the world
last year as operators continued to acquire the spectrum they require to
deploy mobile broadband.

The widespread availability of mobile
networks is accelerating the ability to achieve the UN Sustainable
Development Goals. From improving access to vital services such as
education, healthcare and financial services, to delivering smart
agriculture and electricity management solutions, building resilient
infrastructures or closing the gender gap, mobile technology is central
in addressing a range of socio-economic development challenges. However,
the report also notes the need for regulation to keep pace with rapid
innovation.

“The fast pace of change means regulation can quickly
become obsolete, irrelevant or, in some cases, harmful – distorting
competition, slowing innovation and ultimately depriving consumers of
the benefits of technological progress,” added Granryd. “Recognising
these challenges, the mobile industry is calling on policymakers
worldwide to adapt out-dated market regulations to reflect the new
digital ecosystem.”

The new report ‘The Mobile Economy: 2016’ is
authored by GSMA Intelligence, the research arm of the GSMA. To access
the full report and related infographics please visit:
http://gsmamobileeconomy.com/2016/global/.

About the GSMA

The
GSMA represents the interests of mobile operators worldwide, uniting
nearly 800 operators with more than 250 companies in the broader mobile
ecosystem, including handset and device makers, software companies,
equipment providers and internet companies, as well as organisations in
adjacent industry sectors. The GSMA also produces industry-leading
events such as Mobile World Congress, Mobile World Congress Shanghai and
the Mobile 360 Series conferences.

For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.